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A stock sells for $40. The next dividend will be $4 per share.

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A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is 15% and the company reinvests 40% of earnings in the firm, what must be the discount rate?

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Question;A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on
reinvested funds is 15% and the company reinvests 40% of earnings in the firm, what must be...

This question was asked on May 10, 2010 and answered on May 10, 2010.

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